Rhonda Abrams The Passionate Entrepreneur

The single most important step for insuring the long-term survival of your seasonal business is to rigorously manage your cash. This takes discipline!

During the high season, set aside a certain percentage of sales in a reserve account. Get to know your banker, and establish a line of credit. You've got to be able to pay your bills when the snow melts or the tourists leave.

Directly related to managing your cash is managing your costs.

During your slow season, reduce expenses as much as possible. If practical, employ workers on a seasonal rather than permanent basis. The downside, of course, is that you may not be able to attract the quality of employees that you want.

In a seasonal business, it's absolutely essential to maximize your income during the high season. Use slower periods to get ready. Produce your goods or order inventory; make repairs or conduct maintenance on your facilities; train your employees in sales and customer service.

Some people who run seasonal companies act as if their customers actually vaporize during the off-season. Just because they're not in your store or your town doesn't mean they've ceased to exist.

Develop a mailing list of your high-season customers and stay in touch year round. For example, if you own a restaurant in a tourist area, it's likely that many customers return to your community year after year.

Mail them "Welcome Back" discount coupons, offering free drinks or desserts when they return. Send an email newsletter, letting past customers know what's going on in the community while they're away or informing them of menu items you've added for the upcoming season.

In the off season, it's typically more important to have money coming in than to maintain large profit margins. So offer attractive discounts to customers who buy in the off season.

For instance, if you sell patio furniture, give customers deep winter discounts with the option of taking delivery in spring or summer.

Look for creative or innovative approaches to attract customers to your business in the off season.

For example, if you run a bed and breakfast in a summer tourist location, organize special events -- such as writers' conferences or knitting retreats -- to attract guests in winter months. If you run a lawn-care business, conduct indoor-plant gardening classes to bring customers to your shop in February.

Diversify your offerings to transform your company into a year-round business. For instance, many lawn-care businesses in cold climates offer snow removal services in winter.

If you own a retail store specializing in Christmas gifts, develop a second line -- such as picnic supplies -- for summer months.

If your business is located in a seasonal tourist area, a good way to increase off-season sales is to offer locals deep discounts. Your seasonal restaurant can offer deeply discounted wedding receptions or corporate events for locals in slow months, for instance.

As a small business in a tourist location, it may be difficult to attract visitors on your own. But the community as a whole, or major tourist attractions in your area, may be able to create off-season demand.

Some ski resorts, for example, have developed summer downhill-bicycling programs, bringing tourists back to the hotels and restaurants in their communities. Help your community find ways to attract off-season visitors.